April 25th, 2018
Blockchain technology is one of the most talked topics of right now. Like the internet, blockchain technology is considered to bring revolutionary technological advances in many different fields. Some people, however, are not comfortable with the rising popularity of blockchain technology, they believe blockchain is a scam. Several articles and blogs have been published claiming that this technology has limitations and that it is not ideal for digital interactions. Every technology revolution needs to pass through several barriers, the same holds true for blockchain technology.
Like all other good things, Blockchain technology has its positive and negative features. Constant research and development is being carried out to identify its issues and how to overcome these problems. There is no doubt that blockchain technology has its limitations, but that certainly doesn’t mean it will fail. Already major business executives from around the world are planning to implement this technology.
Blockchain technology is a whole different concept, involving an entire new vocabulary. It is the underlying technology behind cryptocurrencies(think Bitcoin) and has become just as popular, if not more popular, because of it. This highly specialized field is full of complex algorithms, making it difficult for most people to understand. However, some efforts have been made recently to provide indexes and glossaries to make these ideas a little easier to understand.
Blockchain technology, like all other distributed systems, is designed to be stronger and more efficient than traditional systems. This means that this technology responds to attacks and grows stronger every day. This concept requires a large network of users. If this technology is not a strong network with distributed nodes, it becomes tough to reap all of the benefits. Presently, it is a matter of concern for many and is being debated by many around the world. It’s important to know if this is a fatal flaw for some projects.
Currently, blockchain has a notable transaction cost after it was touted as being almost free for the first few years of its inception. The blockchain can process around 10 transactions every second and the cost on each transaction is huge.
There are claims that if blockchain technology is used as a database, all information that is going into the system needs to be of good quality. Data or other information that is stored on the blockchain technology is not trustworthy; all events need to be recorded properly and accurately in first place. The saying ‘garbage in and garbage out’ is considered true in blockchain system, which is quite similar to the centralized database system.
There is one serious security flaw with Blockchain technology which may become more serious over time. If a maximum number of computers or nodes working on the network starts telling a lie, in some time this lie will turn out to be true. This problem is also named as ‘51% attack’ and it was even highlighted by the inventor, Satoshi Nakamoto, while launching this technology.
This is one of the reasons that Bitcoin mining pools are very closely monitored by the community, to ensure that no one gains too much power from such network influence.
The all-new blockchain technology comes with tremendous potential and in the future it may digitize all governance models. A good portion of people are against its implementation and they are trying to politicize the whole matter.
These are some of the major issues which may hamper the growth or wide use of blockchain technology. But it’s true that none of these reasons are strong enough to assume that the technology will fail. Businesses around the world are excited about this new technology and research groups are set up to implement it in best possible manner.